A Homeowner's level of insurance. Does that protect a company adequately?

Recently, I was asked by an international client to review their insurance coverages. They contract for products in an international market. As such, they have numerous product and general exposures for which adequate limits are a must.
When I reviewed the limits for this company, I found I had better limits of coverage for my own auto and homeowners insurance on my own property! Some companies want to skimp on any excess liability insurance in these hard times. However, one good product recall with hundreds of small items could bankrupt a company. A baby swallowing one of those small gadgets may cost you far in excess of any premium you would pay to adequately cover yourself.
Middle market companies often have no internal risk manager and must thus rely on a small local or regional broker. I am certain the broker for this company probably repeatedly warned this CEO his coverage was inadequate. However, until the CEO fully understands the ramifications (mostly to his own pocketbook!), he isn't going to receive the message.
Remember, eyes glaze over on CEO's when talking insurance. Be sure he/she understands the Mercedes he/she is driving, may be at risk (as well as the financial stability of the rest of the company, when very low limits are carried.

Public Option is Vital

As a Risk Manager, I have had the privilege and bane of having to manage health benefits. In addition, I actually worked for one of the "Blues" and spent time on a subrogation desk keeping claims from being paid. (No, I didn't like the job). Now that I am a full time consultant, I am in the market for a good affordable health care plan that doesn't require me to take out a second mortgage on my house so I can pay for it.

Anyone currently railing against a public payer option (ie. run by the government) is only a breath away from needing this plan themselves. Wait until you get laid off.....get really sick......or try to find an independent policy because you cannot find a group plan that you can join. You and your family are really that close to losing affordable health care.

In addition. this whole fight is between those that have and those that don't. It exemplifies the cruelty this country exhibits when they are afraid they "won't get theirs."

And, if you think insurance and drug companies are your friends.....you deserve to read Sarah Palin's blog.

Call you senator and your representative and tell them a public option is vital. Remember, you and your family are only an ambulance ride or job loss away from experiencing the unavailability of health care for yourselves. For those of you that don't heed this message, may I see you at the mercy of the drug and insurance companies you support. If they win this fight, the lack of affordable heath care will only get worse with their hands at the helm of our healthcare system.

CFO's and risk management.

I have recently worked with CFO's placing insurance and working through letters of credit that support large deductible workers' compensation programs. I came away from those experiences realizing that the person in an organization that should be most aware what risks may close their doors has little understanding of how risk works. When you look at the average curriculum of any business school, the CFO or any other senior business professional will likely never take a course on risk management. Yet, much of the success of any business hinges on understanding the upside of a risk as well as the downside. If CEO's do not understand risks and risk management, are we doomed to see more WAMU failures, more Bear Stearns disappearances, and most importantly, the dissipation of our retirement funds? Stay tuned.